Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Teradata Corporation ( TDC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Teradata Corporation as such a stock due to the following factors:
- TDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.4 million.
- TDC is up 2.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TDC with the Ticky from Trade-Ideas. See the FREE profile for TDC NOW at Trade-Ideas More details on TDC: Teradata Corporation provides analytic data solutions worldwide. The company offers data warehousing solutions that include software, hardware, and related business consulting and support services. TDC has a PE ratio of 14.9. Currently there are 6 analysts that rate Teradata Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold. The average volume for Teradata Corporation has been 2.5 million shares per day over the past 30 days. Teradata has a market cap of $6.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.10 and a short float of 8.4% with 3.79 days to cover. Shares are down 10% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Teradata Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 20.5%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- TDC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TDC has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for TERADATA CORP is rather high; currently it is at 61.38%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.56% trails the industry average.
- TDC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.40%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has decreased to $63.00 million or 49.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Teradata Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.